This week, nickel salt prices rose, and the circulation of nickel salts tightened.
As of Thursday this week, the SMM battery-grade nickel sulphate index price was 28,023 yuan/mt, with the quotation range for battery-grade nickel sulphate at 27,970-28,550 yuan/mt. The average price increased WoW.
Supply side, due to limited acceptance of MHP prices by nickel salt smelters, some have already implemented production cuts, leading to relatively limited supply of nickel sulphate in the market. The tight supply in the nickel salt market has fueled a sentiment among smelters to stand firm on quotes. Demand side, during March, precursor plants mainly met production needs through destocking, and their inventory has now dropped to a low level, creating a strong demand for restocking nickel salts. This week, precursor plants' acceptance of spot nickel sulphate prices also improved. Some precursor plants have started negotiating long-term contracts for Q2, but due to the firm sentiment of nickel salt smelters to stand firm on quotes, the negotiations for Q2 contracts are ongoing and have become a game of strategy. Overall, given the tight supply in the nickel salt market and the smelters' sentiment to stand firm on quotes, nickel sulphate prices are expected to continue their upward trend next week.
